CPI Surprise and the Shifting Sands

Well, that CPI print certainly threw a wrench in the works, didn't it? After a few months of feeling like we were on a glide path to 2%, seeing it tick up like that for the second consecutive month is making everyone scratch their heads. The bond market, predictably, got a bit twitchy, and suddenly those aggressive rate cut bets for the summer are looking more like wishful thinking than reality.

I've been watching how this plays into the broader equity picture, especially with the $US30 trying to find its footing after that initial knee-jerk reaction. We're still up over 0.49% today, sitting around 54349, which shows a surprising resilience, or perhaps just a collective shrug from a market that's seen it all before. My watchlist is definitely rotating away from the more rate-sensitive growth names for now. I'm finding myself leaning into more value-oriented plays, and frankly, some of the old-school industrials and financials are starting to look quite appealing again. It's a bit like being told your diet starts tomorrow, but then someone brings in donuts.